Free Practice Questions for Oracle 1z0-1163-1 Exam

Cost Rollup in Oracle Fusion Cloud SCM aggregates all cost components—material, labor, and overhead—to calculate the total cost of a product. This process rolls up costs from raw materials through production stages, providing a comprehensive view for pricing and profitability analysis. For example, producing a widget might involve $5 in materials, $3 in labor, and $2 in overhead; Cost Rollup totals this to $10 per unit. Option B is incorrect because it excludes materials and overhead, which are integral to the process. Option C is false—Cost Rollup reflects current costs, not fixed values, adapting to fluctuations like material price changes. This function supports accurate financial reporting, cost control, and strategic decision-making by revealing true production costs.

In Oracle Fusion Cloud Procurement, IDR and OCR technologies are used to capture and extract data from invoices, automating the data entry process. OCR converts scanned invoice images into machine-readable text, while IDR intelligently interprets and extracts relevant fields (e.g., invoice number, amount). This reduces manual effort and errors. Option A (automated routing) is a downstream process, not the primary function of IDR/OCR. Option B (validation) is a secondary benefit, not the core purpose. Option D (supplier registration) is unrelated to invoice processing. This automation streamlines procurement workflows.

The Production Order to Cost Update process within Oracle Manufacturing Business Process (OMBP) in Oracle Fusion Cloud SCM ensures accurate cost calculations by capturing and updating costs associated with production orders, such as materials, labor, and overhead. This accuracy supports better decision-making and improves profitability by enabling precise cost analysis and pricing strategies. Option A is irrelevant as it ties to CRM, not cost updates. Option B exaggerates automation—human oversight remains necessary. Option D focuses on real-time updates, which is secondary to the primary benefit of accuracy emphasized in Oracle documentation.

Spend Analysis (B)is the cornerstone of the Insight to Sourcing OMBP in Oracle Fusion Cloud SCM, as it involves categorizing and analyzing historical spending data to uncover cost-saving opportunities and inform strategic sourcing decisions. By examining past expenditures—e.g., identifying that 70% of spending on raw materials comes from a single supplier—businesses can negotiate better terms, consolidate suppliers, or shift to lower-cost alternatives, optimizing procurement costs. Option A (Idea Generation) is a preliminary step focused on innovation and market trends, not the core analytical activity driving sourcing. Option C (Performance Monitoring) evaluates supplier performance post-sourcing, not the initial insight process. For instance, Spend Analysis might reveal excessive spending on expedited shipping, prompting a shift to local suppliers, directly impacting cost efficiency and procurement strategy. This data-driven approach ensures decisions are grounded in financial reality, making it fundamental to the OMBP.

ThePredict Demand process (B)in Oracle Fusion Cloud SCM aims to forecast customer demand using advanced tools like machine learning and statistical forecasting. Machine learning analyzes historical sales, market trends, and external factors (e.g., weather or economic indicators) to predict future demand with high accuracy, while statistical forecasting provides a baseline using mathematical models like moving averages. For example, it might predict a 20% increase indemand for air conditioners in summer based on past patterns. Option A is incorrect—demand prediction isn’t limited to local inventory but informs broader supply planning. Option C is false; supplier collaboration remains essential to fulfill predicted demand. Option D is unrealistic—Predict Demand focuses on forecasting, not delivery guarantees. This process ensures businesses can proactively adjust inventory and production, reducing costs and improving service levels.

EmbeddingOracle Method Based Practices (OMBPs) in Starter Configurations (C)provides a prebuilt, standard configuration that streamlines Oracle Fusion Applications implementations using a solution-led approach. These configurations incorporate best practices—e.g., predefined workflows for demand planning—reducing setup time and ensuring consistency. For instance, a company can deploy SCM modules with optimized settings out of the box, customizing only where necessary. Option A is incorrect—third-party access isn’t a focus; security restricts modifications. Option B is partially true but misses the point—OMBPs standardize first, then allow customization, not the reverse. This approach accelerates deployment, lowers costs, and leverages Oracle’s expertise for reliable outcomes.

TheProduction Order to Cost Update OMBP (D)in Oracle Fusion Cloud SCM focuses on providing accurate cost calculations by capturing and updating costs associated with production orders—materials, labor, and overhead—enabling better decision-making. For instance, if producing 100 units costs $1,000 (e.g., $500 materials, $300 labor, $200 overhead), this process ensures the total is reflected accurately, allowing managers to adjust pricing or reduce costs. Option A is misleading—while cost updates occur, the primary purpose is accuracy, not immediate financial gains, which are an outcome. Option B is incorrect—customer relationship management is unrelated to production costing. Option C overstates automation; human oversight is still required, and the focus is on cost, not process automation. Accurate cost data supports profitability analysis, budgeting, and strategic planning, making it a critical link between manufacturing and financial management.

Replenishment Planning (D)in Oracle Fusion Cloud SCM ensures inventory levels are maintained efficiently by predicting demand and adjusting supply plans to replenish stock proactively. It uses forecasts and safety stock rules—e.g., ordering 300 units when stock falls to 50 and demand is expected to rise—to prevent shortages or excess inventory. Option A (Supplier Qualification) focuses on supplier evaluation, not inventory maintenance. Option B (Cost Accounting) tracks financials, not stock levels. Option C (Manufacturing Execution) manages production, not replenishment. Replenishment Planning optimizes inventory turnover, reduces carrying costs, and ensures product availability, making it a proactive inventory management tool.

Global Order Promising (C)provides real-time order commitment dates by analyzing supply (e.g., inventory, production) and demand (e.g., orders, forecasts) constraints enterprise-wide. For instance, if 100 units are requested and 70 are available with a 3-day lead time, it commits to 3 days. Option A is false—no universal same-day guarantee exists. Option B is incorrect—supplier data often informs promises. Option D is wrong—it considers global, not just local, availability. This feature ensures reliable promises, reduces cancellations, and aligns customer expectations with operational capacity.